When markets look unpredictable,

can be a steadying option. Fixed-income products such as , preferred stock, and certificates of deposit can provide investors with reliable returns that are less susceptible to volatility and a hedge against uncertain times.

“Bonds can serve as a diversifier to investors through anticipated ongoing volatility,” says Morningstar senior analyst Paul Olmsted. “With fears of economic volatility and rising tensions at the Fed, bond investors can trust that good active managers can manage risks in their bond portfolios.”

Fixed-Income Investments, Bonds, and Bank Loans

Amid the elevated market volatility of 2025, higher-quality fixed-income assets, such as government bonds, stood out for their relative…